roficiency over Germany's) that there can still be benefits to both. To test this theory, the computer software industry in America (a definite situation of absolute advantage) will be weighed against the computer hardware manufacturing industry in Japan (also a definite absolute advantage). This situation creates a wealth of interesting applications of the comparative trade theories. The tremendously complex relationships between these two industries, combined with the complex trade relationships of the two countries creates many interesting situations for analysis (Japan's software factories, 1991, 29). First here is an overview of the strategic relationships between the software and hardware industries.
Hardware and Software: A Symbiotic Relationship
These two industries were chosen because, even if done in the same country and completely ignoring the idea of finding trading partners they show the benefits of comparati
...